Retailer Sports Direct which has been under intense scrutiny from investors, politicians and the media for over a year due to perceived corporate governance failings and criticisms of its working practices has appointed a permanent finance director.
Jon Kempster will join the company and its board in September. His previous experience includes being finance director of UK logistics & distribution group Wincanton and of industrial group Delta. The previous acting chief financial officer, Matt Pearson had left his post last December. In September last year Mike Ashley, the company’s founder and major shareholder who had been the deputy executive chairman had taken over as chief executive after the resignation of Dave Forsey.
Sports Direct came under criticism in December 2015 following a Guardian newspaper investigation which found agency workers at its Shirebrook warehouse were being paid under the minimum wage and were subject to draconian rules. This led to an investigation into working practices that was published in September last year. In its latest preliminary results released this week (20th July) the chairman, Keith Hellawell reported that the company had “made positive progress across the business as we continue to strive to ensure that all of our people are treated with dignity and respect.”
He stated that: “We have launched a rolling initiative to capture staff feedback called ‘Your Company, Your Voice’. This enables all of our people within the UK, along with agency workers in Shirebrook, to raise any issues of concern or suggestions for improvements. All contributions are carefully monitored so that early action can be taken where appropriate. Details of other measures, including a new staff Health & Safety Committee and a staff Wellbeing Service, are included in our forthcoming Annual Report. A recent survey of workers in Shirebrook, to which 3,300 people responded, showed that an overwhelming majority of people in our warehouse currently feel they are treated with respect.”
Additionally, following an election among Sports Direct staff, the company has appointed a worker representative, Alex Balacki, to the company’s board. Hellawell said: “I have no doubt that Alex’s contribution will prove invaluable to the Board as the Sports Direct family continues to move forward together.”
Hellawell had also been criticised for his performance as chairman and did not receive support from a majority of independent shareholders who voted at the 2016 AGM, but he was re-elected in January this year. Commenting on this Hellawell stated: “I am grateful for the support that I received and I hope that the progress we have made over the last 12 months will be taken into account by shareholders prior to the next shareholder vote at our AGM in 2017.”
Ashley and Hellawell have been holding stakeholder meetings throughout the year as the company works to ensure more confidence in the company in the future.
Last Updated: 21 July 2017